Interest Rate Maintained, Business Community’s Expectations Remain Unfulfilled: Muhammad Ikram Rajput.
Interest rate maintained unfulfilled expectations Muhammad Ikram Rajput
President of Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, expressed disappointment over the State Bank of Pakistan’s decision to keep the policy interest rate unchanged at 11.50 percent under its latest monetary policy announcement. He stated that under the current economic conditions, a reduction in the interest rate was essential to support business activity, industrial recovery, investment growth, and particularly the development of the SME sector. He added that the decision may further increase challenges for industries.
He said that the business community had expected the central bank to adopt a more accommodative monetary stance in light of relatively easing inflation and improving economic stability, enabling industries to reduce production costs and encourage greater investment opportunities.
Muhammad Ikram Rajput noted that high interest rates make borrowing more expensive for the private sector, which negatively impacts new investments, industrial expansion, and job creation. He emphasized that the SME sector is the backbone of the national economy and stressed that providing affordable and accessible financing facilities is the need of the hour for sustainable growth.
The President of KATI further stated that many economies around the world are adopting softer monetary policies to support economic growth, whereas maintaining high interest rates in Pakistan could become an obstacle to industrial development.
He urged the government and the State Bank to take into account the concerns of the industrial and business sectors in upcoming monetary policy decisions and adopt measures that promote economic growth, boost exports, and strengthen industrial activity.
He expressed hope that future decisions regarding interest rates would help restore business confidence and place the economy on a path toward sustainable growth.
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